Stock Market Today: Dow Drops 699 Points After Powell Speech
Fed Chair Powell warned of a slowing economy and higher inflation but said the central bank isn't ready to cut rates just yet.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Stocks opened lower Wednesday and stayed there through the close. A strong March retail sales report could not quiet investors' skittishness and selling accelerated after Federal Reserve Chair Jerome Powell said that the central bank remains in no rush to cut rates.
Ahead of the opening bell, the Census Bureau said that retail sales rose 1.4% month over month in March – a notable jump from February's 0.2% increase and the biggest monthly gain since January 2023.
The impressive growth was driven by a 5.3% month-over-month increase in sales of cars and auto parts. Excluding these, retail sales were up 0.5%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
While today's solid retail sales report would typically "be a good thing for markets, it is very possible that consumers are front-loading their purchases and we may be seeing an artificial bump in sales," says Chris Zaccarelli, chief investment officer for Northlight Asset Management.
The front-loading of purchases came in the lead-up to President Donald Trump's Liberation Day, where he announced sweeping retaliatory tariffs, and sparked a historical stock market sell-off. Most of these tariffs have since been paused, but only temporarily.
Zaccarelli notes that the "uncertainty over tariff policy may be causing even more damage than any policies" that the Trump administration may eventually implement.
Powell talks rate cuts in speech today
Uncertainty over the Trump administration's plans for tariffs and how that's impacting the markets isn't keeping Fed Chair Powell up at night.
In a Q&A session at the Economic Club of Chicago this afternoon, Powell said that "markets are doing what they're supposed to do," and that the Fed will not intervene if the stock market plummets.
Powell also said that while the economy is "moving away" from the central bank's dual mandates for price stability and full employment, the Fed is "well-positioned to wait for greater clarity" before making changes to current monetary policy. In other words, it's in no hurry to cut interest rates prematurely.
This was certainly not what market participants wanted to hear. At the close, the blue chip Dow Jones Industrial Average was down 1.7% at 39,669, the broader S&P 500 was off 2.2% to 5,275, and the tech-heavy Nasdaq Composite was 3.1% lower at 16,307.
Nvidia leads tech stocks lower
All but one of the 11 S&P 500 sectors finished lower today – energy being the outlier.
And tech stocks bore the brunt of the selling after artificial intelligence (AI) chipmaker Nvidia (NVDA) late Tuesday said it will incur a $5.5 billion charge in its first-quarter results.
This is after the U.S. government told the chipmaker that it will need new licenses to export its H20 processors to China and other countries.
"While NVDA has historically adapted to export controls by developing China-specific products, we estimate that this development puts about 8% to 10% of the company's revenue tied to China servers at risk," says CFRA Research analyst Angelo Zino.
Nvidia stock fell 6.9% today, losing $188 billion in market value. For context, this is the entire market cap of blue chip stock Verizon Communications (VZ, -2.0%).
Fellow chip stocks Advanced Micro Devices (AMD, -7.4%) and Broadcom (AVGO, -2.4%) also sold off.
Related content
- What Stocks Are Politicians Buying and Selling?
- Is the Stock Market Open on Good Friday in 2025?
- Ray Dalio Is Ringing Alarm Bells About 'Something Worse Than a Recession'
-
Look Out for These Gold Bar Scams as Prices SurgeFraudsters impersonating government agents are convincing victims to convert savings into gold — and handing it over in courier scams costing Americans millions.
-
How to Turn Your 401(k) Into A Real Estate EmpireTapping your 401(k) to purchase investment properties is risky, but it could deliver valuable rental income in your golden years.
-
My First $1 Million: Retired Nuclear Plant Supervisor, 68Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Don't Bury Your Kids in Taxes: How to Position Your Investments to Help Create More Wealth for ThemTo minimize your heirs' tax burden, focus on aligning your investment account types and assets with your estate plan, and pay attention to the impact of RMDs.
-
Are You 'Too Old' to Benefit From an Annuity?Probably not, even if you're in your 70s or 80s, but it depends on your circumstances and the kind of annuity you're considering.
-
In Your 50s and Seeing Retirement in the Distance? What You Do Now Can Make a Significant ImpactThis is the perfect time to assess whether your retirement planning is on track and determine what steps you need to take if it's not.
-
Your Retirement Isn't Set in Stone, But It Can Be a Work of ArtSetting and forgetting your retirement plan will make it hard to cope with life's challenges. Instead, consider redrawing and refining your plan as you go.
-
The Bear Market Protocol: 3 Strategies to Consider in a Down MarketThe Bear Market Protocol: 3 Strategies for a Down Market From buying the dip to strategic Roth conversions, there are several ways to use a bear market to your advantage — once you get over the fear factor.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
The Best Precious Metals ETFs to Buy in 2026Precious metals ETFs provide a hedge against monetary debasement and exposure to industrial-related tailwinds from emerging markets.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
